Brussels, 27/05/2003 (Agence Europe) - The European satellite radio-navigation programme Galileo should be given new impetus: the Member States of the European Space Agency (ESA) finally reached a final agreement over its financing. On Monday, each accepted that their stake be reduced or increased by a few tenths of a percentage point in order for a compromise be acceptable to all. Spain, which was the last country to oppose the agreement, managed to increase its stake from 9.4% to 10.14%. Belgium's stake was also very slightly increased, while Germany, Italy, France and the United Kingdom accepted to reduce their stake by close to 0.25% or from 17.5 to 17.31%. These figures are not as yet officially confirmed by ESA on Tuesday.
The European Commission, through its spokesperson, stated its delight over the agreement, despite delays. For the ESA Director, Antonio Rodota 'this is a great day for Europe in general and its space community in particular.' 'Conscious of the economic, industrial and strategic importance of satellite navigation, our Member States have reached agreement in the common interest,' he added in a press release.
Now, ESA and the European Commission, who are joint partners in the project (EUR 550 million from both sides in this phase), should rapidly meet to sign the statutes for the joint venture which should manage this project's development phase aimed at competing by 2008 with the American GPS system. The joint venture monitoring council could gather to make the launch of the joint venture official in the week following the Transport Council, around the 10 June, indicates a person close to the dossier. The joint venture should then attempt to make up for lost time by 'immediately' launching the call for tenders for the satellite that will have to make use of the frequencies allocated to Galileo by the World Telecommunications Conference, explains the same source. At the latest in September, the joint venture should publish a call for tenders for the concession that will be responsible for the deployment and operation of the system as of 2006. In fact, the deadlines are extremely tight, both for the initial of use of the frequencies in order for them not to be lost and for the Galileo system to be operational in 2008. The company's monitoring council should also attempt to name the company Director as quickly as possible. The European Commission had suggested the Spaniard Manuel Gordillo, but Germany put pressure for a candidate of its nationality (EUROPE of 14 March).
The agreement arose on Monday in ESA with more than a year's delay compared to the EU Transport Council of Ministers - while most of the Member States remained of the same position. The agreement within the EU had been achieved after more than a year of talks and divergences over the running of this project costing more than EUR 3 billion (EUROPE of 27 March 2002). The rule of 'return on investment' that prevails in ESA - both in terms of contracts and in terms of project management - was at the heart of much of the disagreement. An initial agreement in principal in mid-December between Germany, Italy, France and the United Kingdom over the participation of each of the four to the value of 17.5% of the 550 billion had been denounced in January by Germany and Spain. A new agreement at the end of March between Germany and Italy was insufficient. Spain called for an increase in its stake, as did Belgium.
The Galileo project had been proposed by the Commission in February 1999 (EUROPE of 12 February 1999). Around thirty satellites placed on three earth orbits at 23,316 km supported by a worldwide network of earth stations, would ensure an excellent coverage of the planet, indicates ESA in its press release. Its cost would exceeds EUR 3 billion. After an initial definition phase, the development and validation phase should end in 2005 with a budget of EUR 1.2 billion. According to Commission estimates, the development phase should last two years (2006/2007), for a total cost of roughly EUR 2.15 billion. Galileo has a commercial purpose - to ensure that Europe has a stake in the immense future of radio-navigation and satellite positioning - but also a political purpose. This civil programme placed under civilian control, according to the terms of the Council conclusions in March 2002, must complement and compete with the American GPS, controlled by the US army, and shelter the EU from possible frequency jamming.
The other countries are contributing to the following rates: Switzerland 3.54%, the Netherlands 3.07%, Sweden 2.33%, Austria 1.75%, Norway 1.61%, Finland 1.32%, Portugal 1.14%, Denmark 0.78% and Ireland 0.29%.
According to an independent study, published at the end of 2001, the benefit of the Galileo system for the economy would be of EUR 17.78 billion for the years 2008 to 2020, against a cost (system management included) of 3.9 billion. This assessment takes into account improvements in air and maritime traffic management. Revenues would begin to exceed the costs as of 2011, but the rate of return on investment would remain low (4.1%) due to the weight of investment (EUROPE of 22 November 2001).